U.S. Department of Transportation Approves Purchase of PenAir Assets

U.S. Department of Transportation Approves Purchase of PenAir Assets by Investment Affiliates J.F. Lehman & Company

The acquisition of assets of Peninsula Airways, Inc. (“PenAir”) by investment affiliates of J.F. Lehman and Company, under Chapter 11 sale proceedings, was approved yesterday by the U.S. Department of Transportation (“DOT”). Following receipt of DOT approval, all that remains for the sale to close is securing approval from the Federal Aviation Administration (“FAA”) and finalizing several key commercial agreements. Closing of the sale is anticipated later this month.

The acquisition of the assets of PenAir by investment affiliates of J.F. Lehman and Company, which also owns Anchorage-based Ravn Air Group, will ensure that PenAir continues to provide safe and reliable service and offers a variety of employment opportunities throughout Alaska, while simultaneously creating better and more extensive travel opportunities for its customers.

“Once the sale is complete and we have welcomed PenAir to the Ravn family, we will be able to leverage the strengths of both airlines,” said Dave Pflieger, President and CEO of Ravn Air Group. Together, with our shared priority on safety and operational excellence, we will be able to provide broader, more reliable, and more consistent service to our Alaska communities.”

Once PenAir joins Ravn Air Group as a subsidiary, the airline will keep its current name and continue to operate as a separate company under a separate FAA certificate. Upon completion of the transaction, PenAir will be a financially sound organization with a significantly enhanced ability to serve the state of Alaska.

About Ravn Air Group

Ravn Air Group is headquartered in Anchorage and supported by over 1,000 employees. Ravn operates a highly reliable fleet of almost 70 aircraft on more than 400 flights per day, or nearly 3,000 flights a week, from hubs in Anchorage, Fairbanks, Bethel, Aniak, St. Mary’s, Nome, Kotzebue, Unalakleet, Barrow, and Galena. Earlier this year Ravn also expanded service to Dillingham, King Salmon and McGrath. Ravn Alaska has an FAA-approved Safety Management System (“SMS”), and in May 2018, passed the International Air Transportation Association’s Safety and Operational Audit to become an IOSA-approved airline. Ravn Air Group provides passenger, mail, freight, and charter customers with air transportation and logistics services to more than 115 destinations throughout Alaska. Ravn also has interline airline agreements with Alaska Airlines, American Airlines, Delta Air Lines, Sun Country, United Airlines and PenAir to carry their passengers throughout the state. Passengers may participate in Ravn Alaska’s FlyAway Rewards program for all Ravn Alaska or Ravn Connect flights or accrue Alaska Airlines miles on select Ravn flights. For more information on how to buy tickets or reserve charter flights visit flyravn.com, flyravn.com/charter-a-flight, or call 800-866-8394.

About PenAir

Celebrating over 60 years of service, PenAir began in 1955 in Bristol Bay, Alaska. Today, PenAir is the only airline operating scheduled passenger service with the Saab 2000 aircraft. PenAir currently serves six communities in southwest Alaska, including Dutch Harbor, which is marketed and sold by Alaska Airlines. PenAir is among the first air carriers in the United States to have received approval by the FAA for its Safety Management System (“SMS”). This approval and validation in achieving a demonstration of the company’s highest safety verification in the industry shows their strong and enduring commitment to safety.